It was a strong year for
RACT Travelworld, with many
Tasmanians who had delayed
overseas holidays due to the
global financial situation taking
up their travel plans again.
A new joint venture between
RACT Travelworld and the
Hunter Travel Group was
a positive feature of the
year’s success.
April / MAy 2011
NEW ZEAlAND
AFriCA
EUrOpEAN riVErS
rAil JOUrNEyS
WOrlDCrUiSiNG
New Zealand will
welc ome you
pages 56, 57 and 62
African Safari
page 54
Mitre Peak,MilfordSound,SouthIslandNewZealand
Chief Executive Officer’s Report
2010-2011 has been a productive and important year of
achievement for the RACT.
Changes at the leadership level, the opening of our new
$17 million R ACT House in Hobart, a major new service for
our members in RACT Health Insurance, were all set against
a backdrop of a sluggish economy and negative consumer
sentiment.
Yet our core businesses – R ACT Insurance, R ACT Travelworld
and RACT Membership, which incorporates our Roadside
Assistance service – all performed at or above expectations,
and contributed to a group operating surplus of some
$3.8 million after ta x.
RACT Insurance again led the Tasmanian general insurance
market. It is now an instantly recognisable name when people
think of their insurance needs and this recognition level,
together with the trust factor that is associated with RACT
Insurance, was reflected in a 9.5% increase in gross written
premium. Retention of existing policy holders was also very
high, indicating a strong validation among policy holders of
our insurance products, premiums and service levels.
RACT membership increased during the year. For the first
time since the RACT was founded in 1923, membership
has surpassed the 190,000 mark. This includes Access and
Roadside members.
Access members enjoy a range of non-Roadside RACT
services such as travel and insurance and also enjoy the
benefits of belonging in terms of programs such as our very
successful Show Your Card and Save.
Roadside Assistance membership rose by 2.7% and there
was a further increase in our premium Ultimate level of
Roadside membership which was up by 5.4%. Nearly
50,000 Tasmanians now have this level of membership which
provides a complete suite of assistance measures in the
event of a breakdown in Tasmania or elsewhere in Australia.
During the year, we held functions in the north and the
south of the state to honour more than 160 Tasmanians
who have achieved 50 years of membership during this
year. That’s a combined membership of over 8000 years.
When these 50-year members were honoured this year, I
couldn’t help reflecting that when they first joined the RACT,
Eric Reece was Tasmania’s Premier, Robert Menzies was the
Prime Minister and Dawn Fraser was doing Australia proud in
the Rome Olympics. It is a strong ratification of the RACT’s
efforts over the years that so many members remain so loyal
for so long, even after some of them have stopped driving.
We expect these 50-year functions will step up a pace in the
years ahead as baby boomers join the ranks of our honoured
long term members.
Like our other core businesses, R ACT Travelworld enjoyed a
good year. Two years ago the RACT undertook to support it
through the global financial crisis when travel slumped. This
decision was fully justified this year when R ACT Travelworld
experienced a 15% increase in revenue. People who had
put off travel plans during the turmoil that began in 2008
returned to the market, encouraged by a high Australian
dollar which made overseas travel an attractive proposition
for people holding Australian dollars.
A new joint venture between RACT Travelworld and the
Hunter Travel Group was also an important component in
Travelworld’s success. The joint venture commenced from
July 1 and helped to enhance supplier relations. It provided
significant benefits to our delivery of packaged holidays and
“RACT Health Insurance is a major initiative in our evolution.
It will rank alongside RACT Travelworld and RACT Insurance as
complementary services to augment our foundation service of
Roadside Assistance.”
60 October / November 2011